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Chapter 7

A couple from Plaquemines Parish came into discuss bankruptcy related options to tackle their general debt issues which included past due child support and IRS tax obligations. As well, they were trying to hold onto a vehicle that they had fallen behind on. Ultimately, while we discussed chapter 7 bankruptcy options, since they would in all likelihood lose the vehicle they were trying to keep because they cannot catch up on it before the filing, we delved more deeply into a chapter 13 bankruptcy resolution.

Early 30s single female with one child, who lives in Westwego, Louisiana, was being garnished by a credit card judgment creditor. She owns a $7000 vehicle that we will be able to protect by utilizing the appropriate Louisiana exemptions from seizure. In addition to the $10,000 owed to the judgment creditor, she is approximately 10,000 more to other general unsecured creditors consisting of credit cards, medical bills and unsecured loans. When she came in for her free consultation, 25% of her take-home pay was being garnished by the credit card judgment creditor.

Late 40s divorced male attended the consult to consider bankruptcy related options to control his overwhelming debt. His primary debt stemmed from a home foreclosure deficiency balance. Another words, when his home was foreclosed on, he owed approximately $100,000 but the property only sold for $60,000 at Sheriff sale. Accordingly, the creditor was pursuing him for the $40,000 difference plus interest and cost. As well, he has a proximally $20,000 in credit card debt and a couple thousand dollars in tax liabilities. Finally he has a car note that he is current on.

Late 30s male with two children who resides in New Orleans, Louisiana came in in order to find out what bankruptcy related options may be available to help him save his 18 Wheeler that he uses as his sole means of income. In addition to the 18 Wheeler he has some federal and state tax liabilities along with several thousand dollars of credit card debt. Because he is behind on his 18 Wheeler, the filing of a chapter 7 would in all likelihood result in the loss of the 18 Wheeler back to the creditor.

Husband and wife in mid-50s living in Kenner, Louisiana came in to look at bankruptcy related options in connection with the pending foreclosure/Sheriff sale scheduled to take place within approximately one week. We initially looked at efforts to save the home through a chapter 13 bankruptcy. It's possible to restructure the mortgage arrearages through a chapter 13 plan payment and spread the arrearage out over a 60 month repayment plan.

Early 30s female with two young children who reside in New Orleans, Louisiana came in as result of having received a lawsuit from a creditor that was suing her for a deficiency balance from a car loan. The car had been repossessed and sold at auction for less than the entire amount owed. As a result, she still owed the amount not covered by the creditor in the auction. Since the earlier repossession, she had obtained a new vehicle and had remained current on that car note.

Early 40's female with single child has a full-time job and part-time job but is experiencing difficulties making ends meet. She lives in Terrytown, Louisiana. She has a secured vehicle loan that she is able to keep current but fears that a pending garnishment will result in her falling behind on her vehicle and ultimate loss of her transportation to and from work. She owes approximately $10,000 of dischargeable unsecured debt. The unsecured debt is made up primarily of medical bills and pay day loans.

Early 70s male has a home that has a pending Foreclosure/Sheriff Sale in New Orleans, Louisiana came in to the Gretna, Louisiana office to look at bankruptcy options.. He has tried to modify the loan several times but the mortgage company has refused to qualify him. Accordingly, today is approximately 3 years behind with the mortgage. He has limited income, retirement and Social Security benefits. He also has approximately $30,000 of unsecured debt and a vehicle loan that is up-to-date.

The decision to file for bankruptcy is not one to take lightly. With the multiple bankruptcy plans available and the changes to bankruptcy law that occurred in 2005, it is important to be an informed about options from various scenarios. If you are considering filing for bankruptcy but have concerns about what may happen should your income change, here is an overview of the facts.

During these uncertain times, many hard-working Americans find themselves overwhelmed by financial problems. It can happen to the best of people, no matter what tax bracket they qualify for. If you or anyone you know find yourself in these circumstances, it is crucial that all options of relief are considered. However, most people find that filing for Chapter 7 bankruptcy is the best alternative for financial relief.